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How the Clarity Act Could Reshape Global Crypto Markets
The Clarity Act's security-vs-commodity test will pressure EU, Asia, and Middle East to clarify their own rules. Traders should watch the Senate timetable.
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The US Senate's crypto clarity bill, known as the Clarity Act, is not only a domestic regulatory fix. It is a catalyst that will force foreign regulators to pick a side. The bill aims to establish a statutory test for when a digital asset qualifies as a security versus a commodity. If passed, it would end the current case-by-case SEC enforcement model. That outcome matters globally because the US remains the deepest capital pool for crypto. A clear framework in Washington would pressure regulators in the EU, Asia, and the Middle East to either align their rules or explicitly diverge.
What the Clarity Act Actually Does
The Clarity Act's core mechanism is a classification test. A token is a security only if its issuer retains a controlling interest and the token gives holders a share of future profits. Otherwise, the token falls under the CFTC's commodity jurisdiction. This replaces the SEC's current approach, which has relied on enforcement actions to define security status for tokens like XRP and others.
The bill does not change the status of Bitcoin or Ethereum, both already treated as commodities by the CFTC. The real shift targets tokens issued by centralized foundations or startups that hold ongoing governance power. Most altcoins fall into that category today.
Affected Assets and the Global Regulatory Ripple
For trading desks outside the US, the Clarity Act creates a structural shift. When the SEC labels a token a security, foreign exchanges often delist it to avoid secondary liability. A clear US rule would remove that overhang and potentially unlock institutional access. Tokens that currently trade in regulatory gray zones would gain a defined status.